The Equipment Leasing & Finance Foundation just released a new study, Economic Impacts of the Proposed Changes to Lease Accounting Standards. Researched and written by IHS Global, Inc., this study addresses the future accounting changes and what that will mean for the industry.
Recently, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) proposed a new model under which the value of operating leases would be capitalized and added to a company’s balance sheet (as both an asset and a corresponding liability). In addition, income statements would be modified to replace current rent payments with implied interest and amortization expenses.
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